By Bernie Lopez
Since Meralco VP Elpi Cuna never answered my dare for him to face Pete Ilagan of NASECORE the electric consumer advocate, on the issue of Meralco overcharges of P2 billion (he replied to the letter but not to the dare), let me bring the mountain (Ilagan) to Mohamed (Cuna) through this column. The issue – Media Meralco is accused of deception and illusion by increasing generation charge and systems loss previous to decreasing it to give an illusion of a ‘decrease’. Inquirer headlines screamed “Meralco cuts rates by P0.43 kwh (kilowatt-hour)” when they actually increased it.
So let me quote Pete Ilagan’s letter at length, “Dear Bernie, here are the facts (Inquirer banner story) – 1) generation charge will go down by P0.3786/kwh, 2) system loss charge will decline by P0.0508/kwh, 3) The July generation charge was P5.67/kwh, 4) The July System Loss charge was P0.90/kwh, 5) The August generation charge will be down to P5.2978/kwh, 6) The August System Loss Charge will be down P0.8479/kwh, 7) Napocor rate fell by P0.45/kWh so its average rate is now P5.19/kwh, meaning it used to be P5.64/kwh, 8) Meralco's IPP rates also went down by P0.31/kWh so its down to P4.03/kwh, meaning it used to be P4.34/kwh.
“First, the story failed to cite that the June generation rate was P4.42/kwh so the July rate of P5.67/kWh applied an INCREASE of P1.25/kWh. (THIS WAS NOT BANNERED IN ANY MAJOR NEWSPAPER LAST MONTH). So, even if Meralco cuts down by P0.37/kwh here (P1.25 - 0.3786 = P0.8714/kWh), they will still enjoy an INCREASE of P0.8714/kwh IN THE GENERATION CHARGE in its August billing based on its June rate of P4.42/kwh. ERC gave Meralco a provisional increase of P0.26/kwh in the previous months so it is still (P0.8714 less P0.2692= P0.60/kWh) P0.60/kWh higher.
“Second, the story also failed to cite the June system loss charge of P0.72/kWh (pls check your June and July Billing) so the July rate of P0.90/kWh (P0.72 +0.18) applied an increase of P0.18/kWh. So, even if Meralco cuts down its system loss charge by P0.0508/kWh, it will still enjoy a P0.12/kwh INCREASE in the system loss charge in its August billing. The provisional increase in the system loss charge in the previous months was only P0.07/kWh.
“Third, prior to the commercial operation of the Wholesale Electricity Spot Market WESM) in July 2006, the GENERATION CHARGE that appeared in our Meralco July Billing was P5.21/kWh. The ERC-approved NAPOCOR RATE rate then was P4.93/kwh. This only shows that Meralco IPP rates where higher than P5.21/kWh.
“Using their own announced figures, let's ADD the Napocor's rate of P5.19/kWh and Meralco IPPs' rate of P4.03/kWh and we will arrive at an average rate of P4.61/kWh. This should be then the GENERATION RATE Meralco should be charging us for August AND NOT the P5.27/kwh it announced. The rate given them by ERC prior to the restoration of the automatic recovery adjustment. ERC's provisional approval on GENERATION adjustment recovery(power purchased) was P0.2692. Add this to the basic charge of P4.4296, we were charged then P4.69/kWh. Now, that we have allowed Meralco's announced figures and the figures from our Meralco June and July 2007 bills to speak for themselves, let's ask ourselves if this Meralco-announced rate reduction is something to rejoice about? Let's pray that Meralco may learn to put off falsehood so it may learn to tell the truth.” Signed, Pete Ilagan, NASECORE.
Pete’s letter clearly shows that Meralco is buying power from its affiliate at higher rates, a blatant and unethical conflict of interest wherein the general public, or the electric consumers are at the raw end of the deal.
All the expensive budget of Media Meralco to sway and please the public will not work. Truth shall prevail and it will save us all from Media Meralco’s deception, as hinted by Pete Ilagan’s letter. To turn around and say a decrease is an increase is very creative PR, but truth shall prevail somehow to save the consumer from a partnership of government (ERC) and the private sector (Meralco).
In a letter to Rep. Conrado Albano Jr., chair of the Energy Regulatory Commission (ERC), Pete Ilagan writes, “Except for the month of October 2004, all the monthly generation charges show that the Meralco electric bill had been higher than the ERC-approved NPC rates since March 2003 when the ERC decision on Meralco’s unbundled rate came out. We are, therefore, calling the attention of (ERC) to enforce the said WESM Dispatch Protocol so that its mandate of ensuring consumer protection may have life lest it become a mere lip service to the continued detriment of the captive residential consumers.”
Not conforming to the ERC-approved rates is illegal. It can be the basis of future refunds that the courts can impose on Meralco for breaking the law. Why is Meralco so brave to not follow ERC decisions? You tell me.
Herman Laurel of the Tribune, on August 8, explains that the Inquirer banner story was “damage control and counter attack with lies” orchestrated by Media Meralco because journalists and broadcasters cited “Meralco’s power abuse” by “deliberately omitting the facts”.
Until the day Mr. Elpi Cuna and Meralco face the public squarely, the deception orchestrated by Media Meralco will one day boomerang. Meralco’s ultimate folly is its ability to mix politics and business, today’s deluge, tomorrow’s drought.
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